DP World reported a 2.2 per cent increase in gross container volumes on a like-for-like basis last year, with European and Asian growth offsetting the drop at its Jebel Ali facilities.
The Dubai-headquartered ports operator handled 63.7 million twenty-foot equivalent units last year, up by 3.2 per cent year-on-year on a reported basis from 61.7 million units. Like-for-like basis does not include gross container volume at Yarimca (Turkey), Stuttgart (Germany), Antwerp Inland (Belgium) and Prince Rupert (Canada).
In the fourth quarter, it handled more than 16.1 million units, an increase from 15.2 million units in the same period of 2015. In the fourth quarter, it was up 5.8 per cent on a like-for-like basis and 6 per cent on a reported basis, which was also mainly driven by Asia Pacific and Europe.
While volumes in the Americas and Australia remained flat, volumes at Jebel Ali Port dropped 0.7 per cent to 3.7 million units in the fourth quarter.
On a consolidated level at terminals that the port operator controls, volumes rose by 0.4 per cent on a reported basis but were down by 1.6 per cent on a like-for-like basis to 29.2 million units last year from 29.1 million units in 2015.
“Despite the challenging market conditions, particularly at our flagship Jebel Ali Port, our portfolio continues to deliver ahead-of-market growth, which once again demonstrates the benefits of operating a globally diversified portfolio,” said DP World’s chairman and chief executive Sultan Ahmed bin Sulayem.
While DP World has experienced declines in the UAE, Mr bin Sulayem said volumes were stabilising.
He continued to echo the strategy of focusing on new developments in the Netherlands, India, UK and Turkey.
Mr bin Sulayem said the group would remain prudent in its spending by bringing on capacity in line with demand.
DP World will also target increasing margin cargo while improving efficiencies. In August it planned to slow down the expansion of Jebel Ali Port because of softer market conditions amid a grim global trade outlook.
The Nasdaq Dubai-listed company had last year planned to spend US$1.6 billion on a fourth terminal in Jebel Ali to boost capacity by 16 per cent to 22.1 million units by 2018.
DP World is now delaying the 1.5 million unit expansion of Terminal 3 at Jebel Ali to later this year and will postpone construction of Terminal 4.
The port operator’s net profit attributable to equity holders before separately disclosed items in the six months to June 30 rose by 50.2 per cent year-on-year, on a reported basis, to $608 million.
The 50.2 per cent increase was attributed to continued integration of acquisitions of the Jebel Ali Free Zone and Prince Rupert Terminal in Canada.
lgraves@thenational.ae
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